Requirements for Change

In the late 1980s, Motorola received many requests from conference organizers and individual companies for a briefing on what was entailed in establishing a Six Sigma culture,
on how the mathematics worked for determining a Sigma level, and on the tools and techniques that led to the company’s success. In those briefings we initially presented the “Required Components” fishbone diagram expanding on each of the six components required for a Six Sigma cultural change. We also spent a lot of time on how to measure defects and on the mathematics of how to convert a defect rate into a Sigma value.

By the early 1990s, these companies realized that a transition to Six Sigma would require changes and that they would need to manage the change. We then began getting questions about how we had managed this complex change.

The elements of that chart are explained as follows:
• Vision. Vision is established by creating the vision statement that sets the framework for the mission, objectives, and strategies. All of this provides everyone with a clear view of what is to be accomplished and how it is to be accomplished. It is recommended that each division, department, and work unit create their own mission statement to indicate their role in fulfilling the company’s mission and their contributions toward accomplishing the objectives. This will ensure that they understand the vision as defined and communicated by senior management.

• Skills. Skills are instilled through training. Training is perhaps the most important aspect of managing change. People need to be taught the language, expectations, and rules of the new culture. Technologists and engineers need to be taught experimental designs and process control techniques. Everyone needs to learn basic problem-solving tools and a logical model for how to apply them to continuously improve performance. Everyone must learn teaming and interpersonal skills. Managers at all levels need to be taught leadership skills—how to transition from control management to facilitating leadership.

• Incentive. Incentive is instilled in senior management by tying bonuses to the objectives and creating the new culture within their infrastructures. Within senior management incentive plans, a minimum of 30 percent of their bonus potential should be dependent on achieving quality goals. For everyone within the middle ranks, pay raises can be attached to how well their work units complete action plans and meet their goals. Incentive for work unit members is accomplished through a reward and recognition system. The system should not include monetary rewards. At Motorola we learned this lesson. It was virtually impossible to create a monetary reward system that was equitable. For every employee who was motivated by receiving a bonus, at least ten employees who didn’t receive a bonus were demotivated.

• Resources. Resources required to establish teams are minimal. Members of continuous improvement teams need to be provided one hour a week for team meetings and an additional hour to work on team-specific projects. When first confronted with losing their workers for two hours each week, most managers are concerned about productivity. In fact, in all cases that I was involved with, productivity actually went up. One manufacturing group that had 90 percent participation on teams actually saw a 30 percent increase in productivity. An analysis showed that some gains were attributable to improvements identified and implemented by the teams. However, the greatest gains were achieved because people were working more efficiently and were making better use of their discretionary time. Resources include expert help. In the early stages you will require consultants, either internal or external, to assist the teams with start-up. People will need to be trained. Teams will need to be facilitated. Managers will need to be coached.

• Action Plans. Action plans are part of the organizational development plan. Divisions, departments, and work units are required to generate action plans. As part of their continuous improvement programs, teams are required to issue action plans. Once these action plans are created, they must be worked and completed to schedule. Action plans are “living documents.” This means that as actions are completed, they are removed from the action plan and archived. As new information is attained, new action items need to be added. The operational structure must provide for weekly and monthly reviews on how well each entity is doing on completing their action items on schedule and achieving the desired results.